Apartment rents remain flat in Tokyo, Torch Tower hotel sells for 56 billion Yen, and new apartment supply in greater Tokyo up 50% from last year. Below is a quick weekly summary of some of the recent goings-on in the Japanese real estate market.
Apartment rents remain flat in Tokyo
According to Tokyo Kantei, the average advertised monthly rent of a condominium-type apartment in Tokyo’s 23 wards in February was 3,845 Yen/sqm, down 0.2% from the previous month but up 1.4% from last year. Rents in Tokyo have held relatively steady over the past 12 months, and are up 4.5% from mid-2019. Rents in Saitama City are down 3.1% from last year, and are down 0.9% in Chiba City. Osaka City has seen rents drop 1.5% from last year, while Kobe City has seen a 2.1% fall. Yokohama City saw rents drop 1.8% from the previous month, but are still 5.6% higher than last year.
Torch Tower hotel sold for 56 billion Yen
Mitsubishi Estate and Tokyo Century Corporation are jointly acquiring the hotel and event hall floors of the 390-meter tall Torch Tower building near Tokyo Station for 56 billion Yen (approx. US$514 million). The 63-story tower will be the tallest building in Japan upon its scheduled completion in 2027. Floors 14 to 53 will have office space, while floors 57 to 61 are expected to have an internationally-branded ultra-luxury hotel with approximately 100 guest rooms. Mitsubishi Estate is leading the development project.
New apartment supply up 50% in February
According to the Real Estate Economic Institute, 2,243 brand-new apartments were released for sale across greater Tokyo in February, up 50.7% from last year. The contract ratio was 76.0%, above the 70% line said to indicate healthy market conditions and up 16.7 points from last year. 1,050 apartments were released for sale in Tokyo’s 23 wards, up 61.0% from last year. The contract ratio was 80.9%, up 27.1 points from last year. The average apartment price was 74,310,000 Yen, down 8.1% from last year. A total of 2,500 brand new apartments are expected to be released for sale across greater Tokyo in March (March 2020 = 2,142 units; March 2019 = 3,337 units; March 2018 = 3,617 units).
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